BrandArena: Why Bolt Food is exiting Nigeria

Monday 13 November 2023

Why Bolt Food is exiting Nigeria

Nigerians will no longer be able to place food orders via the Bolt app as of December 7, 2023, as Bolt, the all-in-one mobility app, has decided to discontinue its food delivery business. 

The decision to discontinue the service was made to streamline its resources and maximise overall efficiency, according to the company. Bolt does not appear to be investing any of the €500 million it stated it would invest in Africa.

Bolt Food debuted its meal delivery service in Nigeria roughly two years ago, competing with Jumia Food, Glovo, and Chowdeck in the majority of the country's cities.

Although businesses in Nigeria have faced numerous challenges, including rising fuel costs, rising inflation, managing customer expectations, and limited coverage outside of major cities, a recent IMARC report forecasts the Nigerian food delivery service market to reach US$ 1,719.4 million by 2028, with a growth rate (CAGR) of 12.2% between 2023 and 2028.

ChowDeck, one of the major competitors in the market, recently claimed that it crossed ₦1 billion ($1.2 million) in monthly gross merchandise value (GMV) marking a 10x growth spurt for a company that reportedly crossed ₦100 million monthly GMV ten months ago.

Bolt Food now operates in ten African countries, however, this will be reduced to nine after it quits Nigeria.

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